This article will explain what a Landed Cost Adjustment (LCA) is and how you can use it in your Blackpurl
Parts - The Landed Cost Adjustment (LCA) feature in Blackpurl allows the user to allocate Other Charges on a Vendor Invoice directly against the inventory cost of items that were received on that same Vendor invoice
Units - The Landed Cost Adjustment (LCA) feature in Blackpurl allows the user to allocate additional costs directly against the Unit
Please have a discussion with your team to confirm if the Dealership is using Landed Cost Adjustment
What is Landed Cost Adjustment (LCA)
When a Dealership receives parts/units from their Vendors they quite often incur other costs on the Vendor Invoice besides the costs of the parts/units themselves
These other costs typically are for charges such as freight/shipping or environmental fees etc and are processed as part of the Vendor Invoicing in Blackpurl
These Other Charges can now be included as part of the final inventory cost of those parts/units received and will enable Dealerships to have a lot more accurate profitability reflected on the parts/units when they are sold - showing the true cost of the parts/parts
Parts
How to allocate a Land Cost Adjustment
On the Vendor Invoice, once you add the relevant Fee in the Other Charges section the option to Include other charges as part of the inventory cost? will pop up
To enable this action, simply move the relevant toggle
By default, the system will proportionally allocate the Other Charges against ALL of the line items on the Vendor Invoice. This proportional allocation is based on the total cost of each line item in relation to the total cost of all of the line items
The Applying other charges to invoice items window will pop up for you to review the proportional allocation on the Summary tab
The user can select the proportion allocated as is OR If they wish to make changes to the allocation, click on the Details tab and review each of the line items
Do you want to NOT allocate to specific line items / Do you want to allocate more to a specific line item etc - just make your changes accordingly
Note the Pre-Adjustment and Post Adjustment allocation totals down in the bottom section as you make your changes
You can also toggle between the Summary tab and the Detail tab until you are happy with the result
Once you are happy with the result, simply click APPLY CHANGES
On the Vendor Invoice on the relevant line items you can also see the result of the Landed Cost Adjustment
If you want to see further details on that particular line item (or any other line item), click on See how it's calculated and the How Inventory cost is calculated window will pop up for review
Third-Party Charge to be part of the Landed Cost Adjustment
In some instances, the Dealership may want a Third Party charge to be part of the Landed Cost Adjustment calculations
For example - transport costs or custom fees, etc that have been billed to the Dealership by a separate Vendor on a separate Vendor Invoice but the Dealership still wants to spread the cost across the parts that were received
You will need to know what the Other Charges are from the Third Party before you can process the Parts Vendor Invoice
In order for you to allocate a cost against the inventory items on a Parts Vendor invoice, those costs must be added to the Other Charges section of the Parts Vendor Invoice
But of course, you do not want the total of your Vendor Invoice to change so you would simply add this cost from the “Other Invoice” twice to the Other Charges section of your Parts Vendor Invoice
Once as a positive value and once as a negative value using the same Fee code
Now when you use the Landed Cost Adjustment feature to allocate Other Charges against the Parts Vendor Invoice inventory items BUT you only allocate the positive charge only
Do not allocate the negative charge - if you do then that will cancel out what you are trying to achieve
You do this in the Details tab of the Landed Cost Adjustment tool as seen here
This will mean that you have allocated the Landed Cost Adjustment for the Third Party Charges and the Part Vendor Invoice is still at the right total
You will still need to process the Third Party Invoice in your Accounting package or Blackpurl as the process we did above did not do that - all it did was add the Other Charges as part of the Landed Cost Adjustment
Units
How to allocate a Land Cost Adjustment
When Unit Receiving, the Dealership has the option of Allocate Landed Cost Adjustment
Simply move the toggle to enable the functionality and it will automatically generate a Landed Cost Adjustment section
When receiving the Unit - you will need to complete the top section for the actual Vendor Invoice for the Unit and then complete the Land Cost Adjustment section for the additional charges ie Freight
Option 1
If you have an additional Tax Invoice payable to the freight company then you would add a Land Cost Adjustment for freight and nominate a Vendor as the Vendor has submitted their freight Vendor Invoice to pay
Scenario:
Vendor: Smith and Co are charging the dealership for freight on a separate Vendor Invoice payable to them
The Landed Cost Adjustment would be similar to this - note that we have indicated a Vendor name and Reference (this would be the Vendor Invoice number)
This would then generate a Tax Invoice in your Accounting Package for Smith and Co
We would fill in the relevant information and then click on 
to accept the Landed Cost Adjustment line
You can add multiple Land Cost Adjustment lines if needed by clicking on 
Option 2
If you just want to add a freight line item (but there is no Vendor or Tax Invoice) then you would ensure that your Category is correct (as this is what General Ledger it will hit in your Accounting Package) and not nominate a Vendor
This will just add a Freight component onto the Unit Record
Review the Unit Vendor Invoice section and Landed Cost Adjustment section and if you are happy with the entries click > 
End Result:
If you have no Accounting Integration:
- The Unit Record will now include both the cost of the Unit and the Landed Cost Adjustment
If you have Accounting Integration:
- If you have indicated a Vendor on the Landed Cost Adjustment line item, a Vendor Invoice will integrate into the Accounting Package to allow the Dealership to pay the relevant Vendor ie - Smith & Co
If you have only indicated a Category then a journal will integrate into your Accounting Package:
Debit - Unit Inventory General Ledger
Credit - the General Ledger attached to the Category
- The Unit Vendor Invoice will integrate to the Accounting Package to pay against for the Unit Vendor
- The Unit Record will now include both the cost of the Unit and the Landed Cost Adjustment
